Prada Performance Decline Quality Problem Is The Most Important

2012 is called Prada At its peak, the group's global profits surged 44.8% to 625 million euros (4 billion 254 million yuan) over the same period last year. Sales of 130 stores in the Asia Pacific region (28% of the world's stores) broke through the one billion euro mark for the first time, reaching 1 billion 160 million euros (about 7 billion 895 million yuan), and the proportion in global revenue rose to 35.6%.

Bain's 2012 luxury market report shows that the annual growth rate of luxury goods in mainland China has decreased to around 7%. Under the combined effect of the two factors, the continued decline of the euro and the warming of overseas travel, Chinese consumers have accounted for 60% of the total consumption of luxury goods overseas. Although consumption growth in China is still strong, the growth rate is slowing down to 10%.

Prada barely recorded a 0.3% profit growth in 2013, and the group's revenue rose by 8.8% under the promotion of 79 new stores in the world. The Asia Pacific region opened 27 new stores, and the net sales increased by 11.4% compared to the same period last year (35.6% in 2012).

Because of the slowdown in economic growth, and the impact of neutralization and corruption, it has been growing rapidly for many years. Luxury market in China The negative growth of -1% appeared for the first time in 2014. Bain survey shows that more and more Chinese consumers choose to travel to Japan and South Korea for shopping. As of last April, the sales value of jewelry, watches and clocks and precious gifts decreased by 39.9% compared with the same period last year.

Prada, the luxury brand, also met with it in 2014. Profits fell by 28.2% year-on-year, while sales in the Asia Pacific region shrank by 3.1%, and global sales dropped from 36.4% in 2013 to 35.7%. The radical expansion policy was thrown aside. In the middle of 2014, the number of new outlets in the Asia Pacific region was only 18, the smallest in 3 years.

If all these are caused by the big environment, the quality problem that Prada has criticized in recent years is its unyielding bruising.

In June, the industry and Commerce Bureau conducted a spot check. In the 95 of the unqualified products, there was the name of Prada. Through the search, the negative news of "Prada fade", "Prada offline" and "Prada zipper" can be found everywhere. Just imagine, when you walk on the road with a Prada handbag that costs more than five thousand yuan, suddenly the handle is broken, and all the belongings inside the bag are out of the bag. This scene is embarrassing enough.

In the first quarter of this year, the ugly performance report again touches the weak nerves of investors, Prada Price of stock Thus plunged to 3 years of freezing point, many investment banks downgraded and target price. In the face of the sluggish Hong Kong and Macao market, Prada has tried to reduce the number of shops in addition to reducing the carrying capacity of the 1000 euro -1200 euro (about 6790 yuan to 8148 yuan).